Employee State Insurance Corporation (ESIC) is a prominent social security organization in India, catering to the needs of employees and workers across various sectors. Founded in 1948, it operates under the purview of the Ministry of Labour and Employment, Government of India. ESIC plays a pivotal role in providing comprehensive social security benefits to employees and their families, ensuring their well-being and financial stability.
Historical Context:
Post-independence India witnessed significant changes in labor laws and social welfare policies aimed at safeguarding the interests of workers. The need for a comprehensive social security system led to the establishment of ESIC, inspired by the Beveridge Plan. The corporation was conceptualized to provide medical care, cash benefits during sickness, maternity, and employment injury, and other related benefits to eligible employees.
Constitution of ESI Corporation
The ESI Corporation is an apex body under the Employees’ State Insurance Act. Thus, many important functionaries and experts play a role in its functioning.
The Corporation is headed by a Chairman and a Vice-Chairman that the Central Government appoints. Apart from these, the Central Government gets to appoint five other persons of its choice.
Each State Government also gets to appoint one representative for itself in the Corporation. Another person that the Central Government appoints collectively represents all Union Territories.
In order to represent the views of employers and employees, the Central Government appoints ten persons. The government generally consults with employers’ organizations for this purpose. Even the medical profession gets representation in the Corporation through two members.
Finally, the Corporation also has a Director General whose post is ex-officio. Three Members of Parliament (2 from Lok Sabha and 1 from Rajya Sabha) also become members.
Objectives:
ESIC’s primary objective is to provide social security coverage to employees and their dependents, thereby promoting their socio-economic well-being.
- Healthcare Provision:
ESIC operates a network of hospitals, dispensaries, and clinics across the country, offering quality medical services to insured persons and their families.
- Financial Assistance:
It provides cash benefits to insured persons during periods of sickness, maternity, and employment injury, ensuring financial stability during challenging times.
- Maternity Benefits:
ESIC extends maternity benefits to female employees, including paid leave and medical care before and after childbirth.
- Rehabilitation Services:
In cases of employment injury, ESIC facilitates rehabilitation services to help injured employees return to work and lead productive lives.
- Awareness and Outreach:
The corporation conducts awareness campaigns and outreach programs to educate employees about their rights and entitlements under the ESIC scheme.
Powers of The Employees State Insurance Corporation
The corporation is empowered to take steps for the benefit of the insured persons. They are:
- To promote the measures for the improvement of health and welfare of insured personnel;
- To promote the measures for the rehabilitation and re-employment of insured persons who are disabled or injured;
- To incur expenses in respect of such measures from its fundup to a limit prescribed by the central government.
Benefits:
- Disability Benefit:
In case an employee is disabled, ESIC ensures that the employee is paid their monthly wages for the period of the injury in case of a temporary disablement or for the remainder of the employee’s life in case of a permanent disablement.
- Medical Benefits:
The Employee State Insurance Corporation takes care of an individual’s medical expenses by providing reasonable medical care. This cover comes into effect from day one of the individual’s employment.
- Maternity Benefit:
ESIC helps an employee welcome their baby to a household which has been showered with benefits. ESIC provides a total of 100% of the average daily wages for a period of to 26 weeks from the time of going into labor and 6 weeks in case of a miscarriage. 12 weeks of pay is provided in the case of an adoption.
- Sickness Benefit:
ESIC ensures that there is a flow of cash coming into the employee’s household during medical leave. 70% of the average daily wages of an employee is paid during medical leave for a maximum period of 91 days in two successive benefit periods.
-
Unemployment Allowance:
ESI provides a monthly cash allowance for a maximum period of 24 months in case of permanent invalidity due to a non-employment injury or due to involuntary loss of employment.
-
Dependent’s Benefit:
In case the employee meets with an untimely death due to an injury at the place of employment, ESIC will provide monthly payments apportioned among the surviving dependents.